What is a credit score?
Financial institutions use certain measures to determine the credit worthiness of
a consumer. Many of these numbers are based on a consumer's pay rate, debt to income
ratio, and the ratio of the payment to total debt.
A credit score determines if you will be approved for a loan. Additionally, a credit
score determines what you pay for a loan in interest.
Why is a credit score so important? Will a low credit score cost you many Benjamins?
We are exploring various ratios and rates and their affect on our financial condition.
A Debt to Income ratio represent the comparison of our monthly payments (expenses
plus taxes) against the total amount of money we receive during a month (Gross Income).
We can write the Debt to Income ratio as either:
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How Credit Scores Work.
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Research the meaning of a currency rate of
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find the rate of exchange for three currencies using $1, $5, and $10 US dollars.
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